The scarcity of foreign exchange, especially the dollar, is currently threatening import contracts for Premium Motor Spirit (otherwise called petrol).

Marketers of petroleum products are now finding it difficult to get dollars to finance import transactions; even with the naira equivalent readily available.

Our correspondent learnt that, some marketers, who recently had their credit lines reopened by their banks after a long wait, are also having challenges getting adequate dollar conversions.

The Executive Secretary, Depot and Petroleum Products Marketers Association, Mr. Olufemi Adewole, confirmed this to our correspondent in a telephone interview on Friday.

Adewole said the development had been brought to the notice of the Central Bank of Nigeria, and the apex bank is expected to take quick action before the situation gets out of hand.

He said, “One serious problem marketers are having now is the scarcity of foreign exchange to conclude product supply transactions. Even with our cash in our bank accounts, we cannot get the required amount of dollars.

“We need the CBN Governor to intervene as far as the supply of foreign exchange to marketers is concerned.”

One of the marketers, who also confirmed this to our correspondent but pleaded to speak on condition of anonymity, said a single supply transaction required millions of dollars.

He said, “Wth the situation on the ground, we are limited to getting just $1m per week after so much pressure.”

The PUNCH exclusively reported on Friday that members of DAPPMA recently resumed importation of PMS into the country.

Before the resumption, only the Nigerian National Petroleum Corporation through its subsidiary, Pipelines and Product Marketing Company, was the sole importer of PMS into the country.

This happened after the credit lines of some members of the DAPPMA were reopened by the banks.

Adewole had said, “The PPMC is not the only importer of PMS as of today. Some of our members just discharged their cargos. Although we have not been paid, we are optimistic that very soon our members will be paid by the government.

“All the banks have yet to open credit lines to our members, but some of our members have obtained one or two additional credit lines to import products from their banks as we speak.”

Some of the marketers barely currently importing petrol, according to findings by our correspondent included, Techno Oil and Gas, Masters Petroleum, Rainoil, Bovas, North-West Petroleum in Calabar, Shorelink in Port Harcourt, Emadek and some others.

Early this month, some stakeholders in the downstream sub-sector of the nation’s petroleum industry said the silence of the President Muhammadu Buhari-led Federal Government on policy direction is doing more harm than good to the segment and the nation’s economy at large.

They said the President’s muteness over critical issues like the subsidy arrears owed oil marketers, the future of the subsidy regime for PMS, the Petroleum Industry Bill and other matters bordering on the general regulation of the downstream petroleum business, was unhealthy for the country.

This situation, they noted, was responsible for the high-level of uncertainty currently plaguing the sub-sector.

The Chairman, Nigeria Union of Petroleum and Natural Gas Workers, Lagos Zone, Alhaji Tokunbo Korodo, had told our correspondent that operations in the downstream sub-sector were currently beclouded with uncertainties owing to political indifference.

He said political indifference in this regard remained glaring as the current government had yet to show a policy direction for the downstream segment since May 29 when it was inaugurated.


Source: http://www.punchng.com/news/dollar-scarcity-threatens-fuel-importation/

[size=18pt]Discuss on More Economic News on Naija Pips.com[/size]

How e take consine me

The poster above me is an unpatriotic citizen.
Anyway! I guess the local treatment for the ever increasing Dollars against Naira is to make it scarce.

ELTON123:
How e take consine me

because you are still a Nigeria.

naijapiper:

because you are still a Nigeria.

read my signature

ELTON123:
read my signature

you can be whomever you want in your dreams. In your real life, you are still a Nigerian.

naijapiper:


you can be whomever you want in your dreams. In your real life, you are still a Nigerian.

ALL HAIL BIAFRA

naijapiper:


you can be whomever you want in your dreams. In your real life, you are still a Nigerian.

hahahahahaahha

The daftness of the daura zombie is begining to run economic activities of this country aground, with his focusless and directionless pattern of administration.....

The CBN governor appears not to understand the dynamics of the Nigerian economy.